Headlines

Japan's retail sales rose for the first time in three months in October, though less than expected, and the underlying private consumption trend pointed to persistent strains on a fragile economic recovery despite an easing of COVID-19 curbs, Reuters reported. Following a larger-than-expected contraction in July-September, analysts expect the world's third-largest economy to rebound this quarter thanks to an upturn in household spending, while supply-side concerns still loom for export-reliant businesses.

European Central Bank President Christine Lagarde said that the euro zone is better equipped to face the economic impact of a new wave of COVID-19 infections or the Omicron variant, Reuters reported. Several European countries have introduced restrictive measures due to a new increase in COVID-19 infections. The new coronavirus variant Omicron was detected in South Africa on Friday and has spread rapidly across Europe. "There is an obvious concern about the economic recovery [of the euro zone] in 2022, but I believe we have learnt a lot. We now know our enemy and what measures to take.

Europe’s already fragile economic recovery is at risk of being undermined by a fourth wave of coronavirus infections now dousing the continent, as governments impose increasingly stringent health restrictions that could reduce foot traffic in shopping centers, discourage travel and thin crowds in restaurants, bars and ski resorts, the New York Times reported. Austria has imposed the strictest measures, mandating vaccinations and imposing a nationwide lockdown that began on Monday.

A surge in coronavirus cases in Germany has led to a disappointing start to the Christmas season for retailers in Europe's biggest economy, the sector body said on Sunday, Reuters reported. A survey by the HDE retail association showed that only 20% of 350 companies asked were satisfied with Christmas sales so far. November and December are normally the strongest months of the year for retailers.

The Bank of Canada is warning a rush of investors into the country’s housing market this year has fueled prices and heightened the risk of a correction, Bloomberg News reported. In a virtual speech on Tuesday to discuss financial stability issues, Deputy Governor Paul Beaudry said that risks around the housing market have intensified following a boom in prices that appear to be driven by speculative activity.

Ant Group Co. has started making it clear to customers if they are borrowing from outside lenders or from the company itself, as Jack Ma’s financial-technology giant continues to fall in line with Chinese regulations, the Wall Street Journal reported. Before its wings were clipped by Beijing, Ant, via its payment and lifestyle app Alipay, offered consumer-credit services that were widely popular among Chinese consumers and small businesses.

A resurgence of COVID-19 infections in northern China have forced two small cities to suspend public transport and tighten control over residents' movement, as the country has showed no willingness to go easy on local outbreaks, Reuters reported. China reported 21 new locally transmitted COVID-19 cases with confirmed symptoms on Sunday, official data showed on Monday, marking the highest daily count since mid-November. Almost all of the new local cases were detected in the northern Chinese region of Inner Mongolia.

Spain on Tuesday approved a year-long extension, until the end of 2022, to restrictions on foreign takeovers of Spanish companies it regards as strategic, Reuters reported. As part of measures to protect Spanish firms in the face of the coronavirus pandemic, Madrid imposed a process of authorization for the acquisition by a foreign company of stakes larger than 10% in companies considered to be strategic. The decision to extend the potential veto comes after U.S.

Australia’s central bank will closely monitor risk premiums to judge whether asset prices appear “sensibly valued,” especially at a time of record low interest rates, said Marion Kohler, head of the domestic markets department, Bloomberg News reported. “Asset prices increase when risk-free rates are low, and this is part of the monetary transmission mechanism,” Kohler said in the text of a speech Tuesday.

China’s marked economic slowdown in the second half of the year is testing the central bank’s policy mettle and dividing economists over whether more aggressive action is needed to avoid a deeper downturn, Bloomberg News reported. The People’s Bank of China is having to juggle multiple economic risks, pulling policy in different directions. Growth is heading for lows not seen since 1990 -- if last year’s pandemic year is excluded -- factory-gate inflation is soaring, while the currency is rallying on the back of record trade surpluses. On top of that, the U.S.